AA — Valuation Models

Interactive models with editable assumptions. All calculations run client-side.

Valuation Summary

Model	Intrinsic Value	vs Price ($64.08)
DCF	$82.83	+29.3%
Graham Number	$48.09	-25.0%
Reverse DCF	—	implied g: 2.3%
DDM	$8.24	-87.1%
EV/EBITDA	$65.58	+2.3%

Values reflect default assumptions. Adjust inputs in each model below to update.

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $1.19B

Near-term growth (yrs 1–5)(%)Rev: -1.1% / EPS: 6.4%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 12.79%

Computed WACC: 12.79%

Cost of equity (Re)14.08%(Rf 4.30% + β 1.78 × ERP 5.50%)

Cost of debt (Rd)6.34%(interest expense ÷ avg debt (SEC))

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)85.76%

Debt weight (D/V)14.24%

Results

Intrinsic Value / share$49.89

Current Price$64.08

Upside / Downside-22.1%

Net Debt (used)$1.16B

Sensitivity: WACC (rows) × Near-term g (cols)

WACC \ Near-term	-1.6%	2.4%	6.4%	10.4%	14.4%
7.0%	$84.27	$102.06	$122.72	$146.59	$174.05
8.0%	$68.27	$82.56	$99.14	$118.26	$140.24
9.0%	$57.19	$69.07	$82.83	$98.68	$116.88
10.0%	$49.07	$59.18	$70.88	$84.35	$99.79
11.0%	$42.85	$51.63	$61.76	$73.42	$86.76

2 — Graham Number

Assumptions

MultiplierGraham used 22.5 (15× P/E × 1.5× P/B)

EPS (trailing)($)Yahoo: $4.42

Book Value / share($)Yahoo: $23.25

Results

Graham Number$48.09

Current Price$64.08

Margin of Safety-25.0%

Formula: √(22.5 × max(0,EPS) × max(0,BVPS))

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 12.79%

Terminal growth rate(%)

Computed WACC: 12.79%

Cost of equity (Re)14.08%(Rf 4.30% + β 1.78 × ERP 5.50%)

Cost of debt (Rd)6.34%(interest expense ÷ avg debt (SEC))

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)85.76%

Debt weight (D/V)14.24%

Results

Current Price$64.08

Implied Near-term FCF Growth10.8%

Historical Revenue Growth-1.1%

Historical Earnings Growth6.4%

Base FCF (TTM)$1.19B

Implied growth is the FCF growth rate (yrs 1–5) that makes the DCF intrinsic value equal the current price. Long-term growth is set to half the implied near-term rate.

4 — Dividend Discount Model (DDM)

Assumptions

Annual dividend D0($/share)Yahoo: $0.40

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$8.24

Current Price$64.08

Upside / Downside-87.1%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $1.94B

Target EV/EBITDA multipleCurrent: 9.3×

Net Debt($B)Default: $1.16B

Results

Implied Equity Value / share$65.58

Current Price$64.08

Upside / Downside+2.3%

Implied EV$18.14B

Sensitivity: EV/EBITDA multiple (rows) × Net Debt (cols)

Mult \ Net Debt	$1.16B	$1.16B	$1.16B	$1.16B	$1.16B
5.3x	$35.57	$35.57	$35.57	$35.57	$35.57
7.3x	$50.57	$50.57	$50.57	$50.57	$50.57
9.3x	$65.58	$65.58	$65.58	$65.58	$65.58
11.3x	$80.59	$80.59	$80.59	$80.59	$80.59
13.3x	$95.59	$95.59	$95.59	$95.59	$95.59

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